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Third Substitute S.B. 41

Senator Peter C. Knudson proposes the following substitute bill:


             1     
SITING OF HIGH VOLTAGE POWER LINE

             2     
ACT

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Peter C. Knudson

             6     
House Sponsor: Ben C. Ferry

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill requires a public utility to give notice before constructing a high voltage power
             11      line.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires a public utility to notify an affected entity and affected landowner when
             15      applying for a land use permit to construct a high voltage power line;
             16          .    requires a public utility to conduct public workshops and distribute information to
             17      the public on the proposed high voltage power line;
             18          .    authorizes a public utility or local government to appeal a high voltage power line
             19      route to the Utility Facility Review Board; and
             20          .    makes technical corrections.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:


             26      AMENDS:
             27          54-14-103, as last amended by Laws of Utah 2008, Chapter 360
             28          54-14-202, as enacted by Laws of Utah 1997, Chapter 197
             29          54-14-303, as enacted by Laws of Utah 1997, Chapter 197
             30          54-14-305, as last amended by Laws of Utah 2007, Chapter 242
             31      ENACTS:
             32          54-18-101, Utah Code Annotated 1953
             33          54-18-102, Utah Code Annotated 1953
             34          54-18-201, Utah Code Annotated 1953
             35          54-18-301, Utah Code Annotated 1953
             36          54-18-302, Utah Code Annotated 1953
             37          54-18-303, Utah Code Annotated 1953
             38          54-18-304, Utah Code Annotated 1953
             39          54-18-305, Utah Code Annotated 1953
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 54-14-103 is amended to read:
             43           54-14-103. Definitions.
             44          As used in this chapter:
             45          (1) "Actual excess cost" means the difference in cost between:
             46          (a) the standard cost of a facility; and
             47          (b) the actual cost of the facility, including any necessary right-of-way, as determined
             48      in accordance with Section 54-14-203 .
             49          (2) "Board" means the Utility Facility Review Board.
             50          (3) "Commencement of construction of a facility" includes the project design and the
             51      ordering of materials necessary to construct the facility.
             52          (4) "Estimated excess cost" means any material difference in estimated cost between
             53      the costs of a facility, including any necessary right-of-way, if constructed in accordance with
             54      the requirements of a local government and the standard cost of the facility.
             55          (5) (a) "Facility" means a transmission line, a substation, a gas pipeline, a tap, a
             56      measuring device, or a treatment device.


             57          (b) "Facility" includes a high voltage power line route as defined in Section 54-18-102 .
             58          (6) (a) "Gas pipeline" means equipment, material, and structures used to transport gas
             59      to the public utility's customers, including:
             60          (i) pipe;
             61          (ii) a compressor;
             62          (iii) a pressure regulator;
             63          (iv) a support structure; and
             64          (v) any other equipment or structure used to transport or facilitate transportation of gas
             65      through a pipe.
             66          (b) "Gas pipeline" does not include a service line.
             67          (7) "Local government":
             68          (a) means a city or town as defined in Section 10-1-104 or a county; or
             69          (b) may refer to one or more of the local governments in whose jurisdiction a facility is
             70      located if a facility is proposed to be located in more than one local government jurisdiction.
             71          (8) "Pay" includes, in reference to a local government paying the actual excess cost of a
             72      facility, payment by:
             73          (a) a local district under Title 17B, Limited Purpose Local Government Entities - Local
             74      Districts;
             75          (b) a special service district under Title 17D, Chapter 1, Special Service District Act;
             76      or
             77          (c) a private entity other than the public utility pursuant to a regulation or decision of
             78      the local government.
             79          (9) (a) "Standard cost" means the estimated cost of a facility, including any necessary
             80      right-of-way, if constructed in accordance with:
             81          (i) the public utility's normal practices; and
             82          (ii) zoning, subdivision, and building code regulations of a local government, including
             83      siting, setback, screening, and landscaping requirements:
             84          (A) imposed on similar land uses in the same zone; and
             85          (B) that do not impair the ability of the public utility to provide service to its customers
             86      in a safe, reliable, adequate, and efficient manner.
             87          (b) With respect to a transmission line, "standard cost" is the cost of any overhead line


             88      constructed in accordance with the public utility's normal practices.
             89          (c) With respect to a facility of a gas corporation, "standard cost" is the cost of
             90      constructing the facility in accordance with the public utility's normal practices.
             91          (10) (a) "Substation" means a separate space within which electric supply equipment is
             92      located for the purpose of switching, regulating, transforming, or otherwise modifying the
             93      characteristics of electricity, including:
             94          (i) electrical equipment such as transformers, circuit breakers, voltage regulating
             95      equipment, buses, switches, capacitor banks, reactors, protection and control equipment, and
             96      other related equipment;
             97          (ii) the site at which the equipment is located, any foundations, support structures,
             98      buildings, or driveways necessary to locate, operate, and maintain the equipment at the site;
             99      and
             100          (iii) the structure intended to restrict access to the equipment to qualified persons.
             101          (b) "Substation" does not include a distribution pole-mounted or pad-mounted
             102      transformer that is used for the final transformation of power to the voltage level utilized by the
             103      customer.
             104          (11) (a) "Transmission line" means an electrical line, including structures, equipment,
             105      plant, or fixtures associated with the electrical line, operated at a nominal voltage of 34,000
             106      volts or above.
             107          (b) "Transmission line" includes, for purposes of Title 54, Chapter 18, Siting of High
             108      Voltage Power Line Act, an electrical line as described in Subsection (11)(a) operated at a
             109      nominal voltage of 230 kilovolts or more.
             110          Section 2. Section 54-14-202 is amended to read:
             111           54-14-202. Public utility to provide standard cost and estimated excess cost.
             112           [If] (1) (a) A public utility shall provide the information described in Subsection (1)(b)
             113      if a local government:
             114          (i) is considering imposing requirements or conditions on construction of a facility that
             115      may result in an estimated excess cost and requests that the public utility [to] provide the
             116      estimated excess cost[, the]; or
             117          (ii) recommends an alternative to the public utility's proposed high voltage
             118      transmission line corridor in accordance with the provisions of Title 54, Chapter 18, Siting of


             119      High Voltage Power Line Act.
             120          (b) Subject to Subsection (1)(a), a public utility shall provide to the local government
             121      [the]:
             122          (i) (A) the estimated standard cost of the facility; and
             123          (B) the estimated excess cost of the facility if constructed in accordance with local
             124      government requirements or conditions[.]; and
             125          (ii) the estimated cost of the alternative line corridor proposed by a local government
             126      provided that all affected land use authorities agree to the alternative line corridor proposed by
             127      the local government.
             128          (2) If a public utility does not provide the information as described in Subsection (1),
             129      the local government may:
             130          (a) appeal to the board; and
             131          (b) request that the board review the information provided by the public utility.
             132          (3) (a) If the board finds that the public utility has failed to provide the standard costs
             133      and estimated excess costs in accordance with the provisions of Subsection (1), the board may
             134      request additional information from the public utility.
             135          (b) In accordance with Subsection (3)(a), a public utility shall provide any information
             136      requested by the board within 30 days of the day that the request was made.
             137          (c) If a public utility fails to comply with Subsections (3)(a) and (b), the board may
             138      suspend issuing its written decision in accordance with Section 54-14-305 for 30 days after the
             139      day on which the public utility provides the information requested under Subsection (3)(a).
             140          Section 3. Section 54-14-303 is amended to read:
             141           54-14-303. Actions or disputes for which board review may be sought.
             142          (1) A local government or public utility may seek review by the board, if:
             143          [(1)] (a) a local government has imposed requirements on the construction of a facility
             144      that result in estimated excess costs without entering into an agreement with the public utility
             145      to pay for the actual excess cost, except any actual excess costs specified in Subsection
             146      54-14-201 (2)(a) or (2)(b), at least 30 days before the date construction of the facility should
             147      commence in order to avoid significant risk of impairment of safe, reliable, efficient, and
             148      adequate service to customers of the public utility;
             149          [(2)] (b) there is a dispute regarding:


             150          [(a)] (i) the estimated excess cost or standard cost of a facility;
             151          [(b)] (ii) when construction of a facility should commence in order to avoid significant
             152      risk of impairment of safe, reliable, and adequate service to customers of the public utility; [or]
             153          [(c)] (iii) whether the public utility has sought a permit, authorization, approval,
             154      exception, or waiver with respect to a facility sufficiently in advance of the date construction
             155      should commence, based upon reasonably foreseeable conditions, to allow the local
             156      government reasonable time to pay for any estimated excess cost;
             157          (iv) the geographic boundaries of a proposed corridor as set forth in a notice submitted
             158      by a public utility to a local government pursuant to the provisions of Subsection
             159      54-18-301 (1)(a), provided the action is filed by the local government before the public utility
             160      files an application for a land use permit as set forth in Subsection 54-18-304 (1)(a); or
             161          (v) a modification proposed by a local government to a utility's proposed corridor that
             162      is identified in the public utility's notice of intent required pursuant to Subsection
             163      54-18-301 (3);
             164          [(3)] (c) a local government has required construction of a facility in a manner that will
             165      not permit the utility to provide service to its customers in a safe, reliable, adequate, or efficient
             166      manner;
             167          [(4)] (d) a local government has prohibited construction of a facility which is needed to
             168      provide safe, reliable, adequate, and efficient service to the customers of the public utility;
             169          [(5)] (e) a local government has not made a final decision on the public utility's
             170      application for a permit, authorization, approval, exception, or waiver with respect to a facility
             171      within [120] 60 days of the date the public utility applied to the local government for the
             172      permit, authorization, approval, exception, or waiver;
             173          [(6)] (f) a facility is located or proposed to be located in more than one local
             174      government jurisdiction and the decisions of the local governments regarding the facility are
             175      inconsistent; or
             176          [(7)] (g) a facility is proposed to be located within a local government jurisdiction to
             177      serve customers exclusively outside the jurisdiction of the local government and there is a
             178      dispute regarding the apportionment of the actual excess cost of the facility between the local
             179      government and the public utility.
             180          (2) (a) If an action is filed by a local government pursuant to Subsection (1)(b)(iv) or


             181      (v) seeking a modification to a target study area or a proposed corridor, the local government
             182      shall provide written notice of the action to any potentially affected landowner, as defined in
             183      Section 54-18-102 , or affected entity, as defined in Section 54-18-102 .
             184          (b) A potentially affected landowner, as defined in Section 54-18-102 , or affected
             185      entity, as defined in Section 54-18-102 , shall have a right to intervene as a party in the
             186      proceeding.
             187          Section 4. Section 54-14-305 is amended to read:
             188           54-14-305. Written decisions of board.
             189          (1) The board shall issue a written decision on the review expeditiously and, in any
             190      event, not later than 45 days following the initial hearing.
             191          (2) The written decision shall:
             192          (a) specify whether the facility should be constructed and, if so, whether any
             193      requirements or conditions imposed by the local government may not be imposed because they
             194      impair the ability of the public utility to provide safe, reliable, and adequate service to its
             195      customers; and
             196          (b) resolve any dispute regarding:
             197          (i) the standard cost or estimated excess cost of the facility;
             198          (ii) the date on which construction of the facility should commence in order to avoid a
             199      significant risk of impairment of safe, reliable, and adequate service to customers of the public
             200      utility;
             201          (iii) whether the public utility has sought a permit, authorization, approval, exception,
             202      or waiver with respect to a facility sufficiently in advance of the date construction should
             203      commence, based upon reasonably foreseeable conditions, to allow the local government
             204      reasonable time to pay for any estimated excess cost; [or]
             205          (iv) apportionment of the actual excess cost of the facility between the local
             206      government and the public utility pursuant to Subsection 54-14-303 (7)[.]; or
             207          (v) the proposed location and siting of a facility subject to Title 54, Chapter 18, Siting
             208      of High Voltage Power Line Act, and in accordance with Section 54-14-102 .
             209          (3) (a) Notwithstanding Subsection (6), the written decision of the board may designate
             210      the facility route for a high voltage transmission line pursuant to a dispute described under
             211      Section 54-14-304 .


             212          (b) The public utility shall be entitled to recover from its ratepayers any actual excess
             213      costs apportioned to it under Subsection (2)(b)(iv).
             214          [(3)] (4) If the board determines that a facility that a local government has prohibited
             215      should be constructed, the written decision shall specify any general location parameters
             216      required to provide safe, reliable, adequate, and efficient service to the customers of the public
             217      utility.
             218          [(4)] (5) The written decision shall leave to the local government any issue that does
             219      not affect the provision of safe, reliable, adequate, and efficient service to customers of the
             220      public utility or that does not involve an estimated excess cost.
             221          [(5)] (6) With respect to local government requirements or conditions that impose an
             222      estimated excess cost but do not impair the provision of safe, reliable, and adequate service to
             223      the customers of the public utility, the written decision shall leave each siting issue to the local
             224      government except determination of the estimated excess cost and determination of when the
             225      construction of the facility should commence.
             226          [(6)] (7) In determining when the construction of the facility should commence, the
             227      board shall consider whether the public utility sought a permit, authorization, approval,
             228      exception, or waiver from the local government in a timely manner based upon reasonably
             229      foreseeable conditions, and, if the board determines that the public utility did not do so, it shall
             230      allow sufficient time for the local government to pay any actual excess cost that may be
             231      imposed as a result of requirements or conditions the local government has imposed that do not
             232      impair the provision of safe, reliable, and adequate service to customers of the public utility.
             233          Section 5. Section 54-18-101 is enacted to read:
             234     
CHAPTER 18. SITING OF HIGH VOLTAGE POWER LINE ACT

             235     
Part 1. General Provisions

             236          54-18-101. Title.
             237          This chapter is known as the "Siting of High Voltage Power Line Act."
             238          Section 6. Section 54-18-102 is enacted to read:
             239          54-18-102. Definitions.
             240          As used in this chapter:
             241          (1) "Affected entity" means an entity as defined in Sections 10-9a-103 and 17-27a-103 .
             242          (2) "Affected landowner" means an owner of a property interest, as reflected in the


             243      most recent county or city tax records as receiving a property tax notice, whose property is
             244      located within a proposed corridor.
             245          (3) (a) "Construction" means the excavation, construction, and installation of a high
             246      voltage electric power line or upgraded high voltage transmission line.
             247          (b) "Construction" does not include:
             248          (i) the temporary use of sites; or
             249          (ii) studies and tests for:
             250          (A) requirements of this chapter;
             251          (B) state regulations;
             252          (C) federal regulations;
             253          (D) securing geological and survey data; or
             254          (E) any other actions taken by a public utility reasonably necessary to determine the
             255      location of a target study area or proposed corridor.
             256          (4) "High voltage power line" means:
             257          (a) an electrical high voltage power line with a nominal voltage of 230 kilovolts or
             258      more; and
             259          (b) an upgraded high voltage power line.
             260          (5) "Land use application" has the same meaning as provided in Sections 10-9a-103
             261      and 17-27a-103 .
             262          (6) "Land use authority" has the same meaning as provided in Sections 10-9a-103 and
             263      17-27a-103 .
             264          (7) "Land use permit" has the same meaning as Sections 10-9a-103 and 17-27a-103 .
             265          (8) "Legislative body" has the same meaning as provided in Sections 10-9a-103 and
             266      17-27a-103 .
             267          (9) "Proposed corridor" means the transmission line route within a target study area
             268      selected by the public utility as the public utility's proposed alignment for a high voltage power
             269      line.
             270          (10) "Proposed route" means the right-of-way needed for construction of the high
             271      voltage power line.
             272          (11) "Public utility" has the same meaning as provided in Section 54-2-1 .
             273          (12) "Target study area" means the geographic area for a new high voltage transmission


             274      line or an upgraded high voltage power line as proposed by a public utility.
             275          (13) "Upgraded high voltage power line" means increasing the voltage of an existing
             276      transmission line to 230 kilovolts or more.
             277          Section 7. Section 54-18-201 is enacted to read:
             278     
Part 2. Public Utility Duties for High Voltage Power Lines

             279          54-18-201. Public utility to obtain approval for high voltage power lines.
             280          (1) Except as provided in Subsections (2) and (3), a public utility shall comply with the
             281      requirements of this chapter before beginning construction or operation of:
             282          (a) a high voltage power line; or
             283          (b) an upgraded high voltage power line.
             284          (2) A public utility is not subject to the provisions of this chapter if the public utility
             285      has on or before May 12, 2009:
             286          (a) filed an application for or obtained a certificate of convenience and necessity for a
             287      high voltage power line in accordance with the provisions of Section 54-4-25 ; or
             288          (b) has initiated the acquisition of right-of-way for the construction of the high voltage
             289      transmission line.
             290          (3) A transmission line that is subject to federal permitting is not subject to the
             291      provisions of this chapter.
             292          Section 8. Section 54-18-301 is enacted to read:
             293     
Part 3. Notification -- Process for Obtaining Land Use Permit -- Appeal

             294          54-18-301. Notice of intent to file -- Content -- Prefiling procedures.
             295          (1) If a public utility conducts any field work in preparation of establishing a target
             296      study area before a notice of intent is filed in accordance with Subsection (2)(a), the public
             297      utility shall first notify the local land use authority of the public utility's work.
             298          (2) (a) At least 90 days before the day on which a public utility files a land use
             299      application in a city or county that requires a permit for the construction of a high voltage
             300      power line or an upgraded high voltage power line, the public utility shall submit a notice of
             301      intent to the land use authority of each affected entity.
             302          (b) The notice of intent described in Subsection (2)(a) shall include:
             303          (i) the name and mailing address of the public utility, including:
             304          (A) the name of a contact person; and


             305          (B) an address and telephone number for the contact person;
             306          (ii) the purpose and need for the high voltage power line;
             307          (iii) a map showing the target study area;
             308          (iv) a description of environmentally sensitive areas in the target study area;
             309          (v) the timing of construction; and
             310          (vi) a list of affected entities.
             311          (c) The land use authority of an affected entity may provide written comments to the
             312      public utility within 30 days after the day on which the notice of intent is mailed under
             313      Subsection (2)(a).
             314          (3) At least 60 days before filing a conditional use permit application with a local land
             315      use authority, the public utility shall send a notice to:
             316          (a) an affected entity;
             317          (b) the land use authority of an affected entity; and
             318          (c) an affected landowner.
             319          (4) The notice required under Subsection (3) shall include:
             320          (a) the name and mailing address of the public utility, including:
             321          (i) the name of a contact person; and
             322          (ii) an address and telephone number for the contact person;
             323          (b) a description of the proposed corridor, including:
             324          (i) location maps of:
             325          (A) the target study area; and
             326          (B) the public utility's proposed corridor within the target study area;
             327          (ii) the width of the proposed route needed for the high voltage power line;
             328          (iii) a description of the website described in Subsection (6); and
             329          (iv) an explanation of:
             330          (A) the land use application process;
             331          (B) how an affected landowner may participate in a land use authority's land use
             332      application process; and
             333          (C) the rights of an affected land owner under Title 78B, Chapter 6, Part 5, Eminent
             334      Domain.
             335          (5) (a) For purposes of Subsection (3), a county, at the public utility's request, shall


             336      provide a certified list of the most recent county tax records showing all affected landowners
             337      within 30 days after the day on which the public utility submits the request.
             338          (b) A public utility may not be required to restart the notification process if:
             339          (i) the county information provided under Subsection (5)(a) is insufficient or incorrect;
             340      and
             341          (ii) the public utility fails to send an affected landowner a notice of intent based on the
             342      insufficient or incorrect information.
             343          (6) Within one week of filing the notice of intent with a land use authority in
             344      accordance with Subsection (2), the public utility shall:
             345          (a) (i) create and update a website to dispense information about the proposed high
             346      voltage power line; and
             347          (ii) on the website:
             348          (A) designate a public utility point of contact; and
             349          (B) explain how the public utility will respond to requests for information from the
             350      public and public officials; and
             351          (b) (i) publish a public notice in a daily or weekly newspaper of general circulation at
             352      least once per week for two weeks in each county where the target study area is located
             353      disclosing that the public utility has filed a notice of intent with an affected entity; and
             354          (ii) describe in the public notice:
             355          (A) the proposed high voltage power line, including a map of the target study area; and
             356          (B) how readers may obtain more information from the website or locations listed in
             357      Subsection (3).
             358          Section 9. Section 54-18-302 is enacted to read:
             359          54-18-302. Public workshops.
             360          After a public utility files the notice of intent in accordance with Subsection
             361      54-18-301 (3) and before it files a land use application, the public utility shall:
             362          (1) conduct informal public workshops at locations along the proposed corridor to
             363      provide information about:
             364          (a) the high voltage power line; and
             365          (b) the process for obtaining a land use permit; and
             366          (2) provide notice of the public workshops at least 14 days before a public workshop


             367      to:
             368          (a) a newspaper of general circulation in the target study area;
             369          (b) radio stations in the target study area; and
             370          (c) an affected entity.
             371          Section 10. Section 54-18-303 is enacted to read:
             372          54-18-303. Application for land use permit.
             373          (1) Before a public utility may file a land use application for a proposed high voltage
             374      power line, the public utility shall, in accordance with Subsection (2), identify a proposed
             375      corridor in the public utility's land use application after:
             376          (a) providing a notice of intent in accordance with Section 54-18-301 ; and
             377          (b) conducting the public workshops in accordance with Section 54-18-302 .
             378          (2) If a public utility files a land use application for a high voltage power line, the
             379      public utility shall comply with the land use application requirements created by a legislative
             380      body and land use authority in accordance with Title 10, Chapter 9a, Municipal Land Use,
             381      Development, and Management Act, and Title 17, Chapter 27a, County Land Use,
             382      Development, and Management Act.
             383          (3) A local government may request cost information for modifications to the utility's
             384      proposed corridor in accordance with the provisions of Title 54, Chapter 14, Utility Facility
             385      Review Board Act.
             386          Section 11. Section 54-18-304 is enacted to read:
             387          54-18-304. Review of land use application.
             388          (1) (a) A land use authority shall grant or deny a public utility's land use permit within
             389      60 days after filing in accordance with the provisions of Title 10, Chapter 9a, Municipal Land
             390      Use, Development, and Management Act, and Title 17, Chapter 27a, County Land Use,
             391      Development, and Management Act.
             392          (b) The Utility Facility Review Board may review a land use authority's land use
             393      permit decision in accordance with Title 54, Chapter 14, Part 3, Utility Facility Review Board.
             394          (2) Notwithstanding Subsection (1), if a public utility does not satisfy the notice of
             395      intent requirements in accordance with Section 54-18-301 and public workshop requirements
             396      in accordance with Section 54-18-302 , a land use authority may withhold a decision on a public
             397      utility's land use permit until the public utility satisfies the notification and public workshop


             398      requirements.
             399          Section 12. Section 54-18-305 is enacted to read:
             400          54-18-305. Appeal of high voltage power line route.
             401          This section does not affect a public utility's or local government's right to appeal a high
             402      voltage power line route to the Utility Facility Review Board in accordance with the provisions
             403      of Title 54, Chapter 14, Utility Facility Review Board Act.


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